ABC Manufacturing Company's costing system has two direct cost categories: direct materials and direct manufacturing labour. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard DMLH. At the beginning of 2018, ABC adopted the following standards for its manufacturing costs:

Part 2 ABC Manufacturing Company's costing system has two direct cost categories: direct materials and direct manufacturing labour. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard DMLH. At the beginning of 2018, ABC adopted the following standards for its manufacturing costs: Input Cost per Output Unit Direct materials 3 kg at $5 per kg $ 15 Direct manufacturing labour 5 hours at $15 per hour 75 Manufacturing overhead: Variable $6 per DMLH 30 Fixed $8 per DMLH 40 Standard manufacturing cost per output unit $160 The denominator level for total manufacturing overhead per month in 2018 is 40,000 DMLH. ABC's flexible budget for January 2018 was based on this denominator level. The records for January indicate the following: Direct materials purchased 25,000 kg at $5.20/kg Direct materials used 23,100 kg Direct manufacturing labour 40,100 hours at $14.60/hour Total actual manufacturing overhead $600,000 (variable and fixed)The denominator level for total manufacturing overhead per month in 2018 is 40,000 DMLH. ABC's flexible budget for January 2018 was based on this denominator level. The records for January indicate the following: Direct materials purchased 25,000 kg at $5.20/kg Direct materials used 23,100 kg Direct manufacturing labour 40,100 hours at $14.60/hour Total actual manufacturing overhead $600,000 (variable and fixed) Actual production 7,800 output units 1. Prepare a schedule of total standard manufacturing costs for the 7,800 output units in January 2018 2. For January 2018, calculate the following variances, indicating whether each is favourable (F) or unfavourable (U): a. Direct materials rate variance, based on purchases. b. Direct materials efficiency variance. c. Direct manufacturing labour rate variance. d. Direct manufacturing labour efficiency variance. e. Total manufacturing overhead rate variance. f. VMOH efficiency variance. g. Production-volume variance